One of the most commonly asked questions we get at APS Solar is, “Is solar power affordable in Arizona?” This article will help breakdown the costs associated with solar power in Arizona and also the savings on the back end.
The average cost of solar panels per watt in Arizona is around $3.50 as of August 2020. The average home has a 5 kilowatt-6 kilowatt solar system and the average cost is about $15,000 before factoring in federal tax credits and any other incentives, which will reduce the price considerably. Just like any other home modification, the price will mostly depend on the size of the system. Other key financial factors include the company and equipment you choose.
The best way to find out how much it will cost to set up solar power at your home and/or business is to contact us today to schedule an appointment. A few online resources to help provide a ballpark estimate include:
Google’s Project Sunroof
Solar-Estimate’s Solar Panel Calculator
Arizona is a hotbed for solar power in 2020. An excess of 3.6 gigawatts already installed puts Arizona in the #1 spot for solar power. With nearly 10% of Arizona and over 500,000 homes powered by solar, Arizona also has some of the best tax exemptions in the country.
Residential Arizona Solar Tax Credit – reimbursement of 25% of the cost of your solar panels (max: $1,000). The credit is applied to your personal income tax in the year you install the system.
Solar Equipment Sales Tax Exemption – excludes you of any Arizona solar tax. This means no sales tax on the purchase of your solar system.
Energy Equipment Property Tax Exemption – no additional property taxes on the value you add by investing in solar panels.
Solar Investment Tax Credit (ITC) – worth 26 percent of the system cost and is deducted from your federal income tax. There are some stipulations, but the majority of applicants are eligible.
We hope this article has helped provide the answers you’re looking for. As you can see from the data, solar power is affordable in Arizona. Not only that, it will greatly reduce your energy costs and have a positive impact on the environment.